BoI Davao reports spike in investment inquiries

Subscribe Now July 06, 2016 at 08:43am

The Board of Investments (BoI) in the city is dealing with a surge in investment leads after policy direction set by President Rodrigo R. Duterte early in his term suggests he will steer development outside of Metro Manila and the surrounding areas.

“Investor interest in Mindanao started two months before the May elections and ballooned right after the elections,” BoI Davao Director Gil Dureza said in a news conference Monday. Investment leads for Mindanao amounted to P886.75 billion in the six months to June 2016.

The investment leads, mostly from foreign parties are in the areas of manufacturing with P742 billion, power generation with P49 billion, public-private partnership (PPP) Projects with P39 billion, resource-based agriculture with P33 billion, infrastructure and port development with P3 billion, mass housing projects with P510 million, and Business Processing Outsourcing with P160 million.

“We have not experienced such an upbeat investment climate in the Davao Region and even in Mindanao before; there is a terrific investment climate right now,” Mr. Dureza said.

He said the election of a president from Mindanao has given investors a strong signal to invest. In particular, Mr. Duterte’s earlier pronouncement of amending the 60-40 constitutional prohibition on foreign ownership of businesses has boosted the interest of foreign investors and attracted interest from Europe, the United States, China, Taiwan, Malaysia and India.

“We are helping these investors with the requirements so we can convert these investment leads to actual investments,” he said. Aside from the BoI, other agencies like the Davao City Investment Promotions Center and the Mindanao Development Authority are also working double time to help these investors.
Mr. Dureza said investors can choose to locate their businesses in a number economic zones in the region.

Regional Development Council Chair Rodolfo P. Del Rosario earlier said a number of establishments is expected to apply for accreditation with the Philippine Economic Zone Authority between 2015-2030. The potential economic zones in the region include a 3,856 square meter area in Matina Town Square and Megaworld in Davao City, an IT Park in Tagum City, Kopiat Island in Mabini, Compostela Valley, Astorga Business and Industrial Park in Sta. Cruz, Davao del Sur and the Tubalan Cove Business and Industrial Park in Malita, Davao Occidental.

Recently, San Miguel Corp. also invited potential investors to the 2,000-hectare PEZA-approved Davao Industrial Estate. The site is located between Davao City and General Santos City, offers a 20-meter deep international port that can accommodate container vessels, a private airport and a 600-megawatt (MW) power plant expected to go online within the second quarter of the year.

Mr. Del Rosario, however, said energy is a major concern of the business sector in the region so the RDC is targeting the development of a more sustainable Davao Region Power Mix. The target is to increase power supply from 240 MW in 2010 to 540 MW by end of 2016 with the installation and commissioning of diesel, hydro and coal power plants.

A total of 328.6 MW of new capacity was installed between 2013 and the first quarter of 2016 thus surpassing the region’s target for additional power supply. Construction of two more power plants, namely the San Miguel Consolidated Power Corp.’s 300-MW coal-fired power plant in Malita, Davao Occidental and Enfinity Philippines Renewable Resources, Inc.’s 33.56-MW solar power plant in San Roque, Digos City, Davao del Sur are expected to be completed within the year.